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ROGERS CORP

ROG
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Business Summary

Rogers Corporation designs, develops, manufactures and sells high-performance and high-reliability engineered materials and components. The company operates two strategic operating segments: Advanced Electronics Solutions (AES) and Elastomeric Material Solutions (EMS), with remaining non-core operations reported in an Other segment. The AES segment serves markets including EV/HEV, automotive (e.g., ADAS), aerospace and defense, renewable energy, wireless infrastructure, mass transit, industrial, connected devices, and wired infrastructure. The EMS segment serves markets including EV/HEV, general industrial, portable electronics, automotive, mass transit, aerospace and defense, footwear, impact mitigation, and medical. The company is headquartered in Chandler, Arizona.

Rogers sells its materials and components primarily through direct sales channels near major concentrations of customers in North America, Europe and Asia. The company sold to approximately 2,800 customers worldwide in 2025, consisting primarily of OEMs and component suppliers. No individual customer represented more than 10% of total net sales for 2025. Rogers competes primarily with manufacturers of high-end materials, some of which are large, multi-national companies, principally on the basis of innovation, historical customer relationships, product quality, reliability, performance and price, technical service and support, breadth of product line, and manufacturing capabilities. The company also faces competition from manufacturers of commodity materials, including smaller regional producers, particularly in Asia, that generally compete on price. Rogers believes its competitive position is supported by its focus on differentiated, high-performance materials and components, its history of innovation, and the value customers place on its technical expertise, product quality, reliability, and customer support.

Rogers generates revenue through the design, development, manufacture and sale of engineered materials and components. The majority of sales are recognized at a point in time pursuant to short-term purchase orders, which are made without deposits and may be rescheduled, canceled or modified on relatively short notice without substantial penalty. Some products manufactured to customer specifications are customized to such a degree that they are deemed to have no alternative use, and for those products revenue is recognized on an over-time basis. Products are sold globally to converters, fabricators, distributors and OEMs. The company employs a technical sales and marketing approach, working collaboratively to provide design engineering, testing, product development and other technical support services.

The AES operating segment designs, develops, manufactures and sells circuit materials, ceramic substrate materials, busbars and cooling solutions. Key trade names include curamik, ROLINX, RO4000 Series, RO3000 Series, RT/duroid, CLTE Series, TMM, AD Series, DiClad Series, CuClad Series, Kappa, COOLSPAN, TC Series, IsoClad Series, MAGTREX, IM Series, 2929 Bondply, SpeedWave Prepreg, RO4400/RO4400T Series and Radix. As of December 31, 2025, AES had manufacturing and administrative facilities in Chandler, Arizona; Rogers, Connecticut; Bear, Delaware; Eschenbach, Germany; Suzhou, China; Budapest, Hungary; and administrative facilities in Evergem, Belgium. AES net sales were $445.2 million in 2025, compared to $452.2 million in 2024. AES gross margin as a percentage of net sales was 29.6% in 2025, compared to 29.3% in 2024.

The EMS operating segment designs, develops, manufactures and sells engineered material solutions including polyurethane and silicone materials for cushioning, gasketing and sealing, and vibration management; customized silicones for flex heater and semiconductor thermal applications; and polytetrafluoroethylene and ultra-high molecular weight polyethylene materials for wire and cable protection, electrical insulation, conduction and shielding, hose and belt protection, vibration management, cushioning, gasketing and sealing, and venting applications. Key trade names include PORON, BISCO, DeWAL, ARLON, eSorba, XRD, Silicone Engineering and R/bak. As of December 31, 2025, EMS had manufacturing and administrative facilities in Rogers, Connecticut; Woodstock, Connecticut; Bear, Delaware; Carol Stream, Illinois; Narragansett, Rhode Island; Suzhou, China; Blackburn, England; Ansan, South Korea; and Evergem, Belgium. EMS net sales were $349.7 million in 2025, compared to $360.9 million in 2024. EMS gross margin as a percentage of net sales was 34.2% in 2025, compared to 38.4% in 2024.

In 2025, Rogers recognized impairment charges of $71.8 million related to its curamik reporting unit within the AES operating segment, and $1.9 million related to the impairment of its facility lease in Mexico. The company recognized restructuring charges of $23.4 million in 2025 due to the wind down of manufacturing operations for the AES segment in the Evergem, Belgium facility, phase one of curamik manufacturing footprint consolidation, the executive leadership transition, and the reduction of the global workforce. Rogers repurchased 738,145 shares of its capital stock for $52.4 million in 2025. In 2024, the Board of Directors authorized an additional $100.0 million for share repurchases. As of December 31, 2025, $51.8 million remained available under the share repurchase program.

In 2025, net sales decreased by 2.3% to $810.8 million from $830.1 million in 2024. Gross margin decreased 170 basis points to 31.7% from 33.4% . Operating income as a percentage of net sales decreased 860 basis points to (5.6%) from 3.0% . Net loss was $61.8 million in 2025, compared to net income of $26.1 million in 2024. Diluted loss per share was $3.40 in 2025, compared to diluted earnings per share of $1.40 in 2024.

Business Outlook

In 2026, Rogers expects capital spending to be in the range of approximately $30.0 million to $40.0 million , of which the company is contractually committed to $4.7 million as of December 31, 2025. The company plans to fund capital spending in 2026 with cash from operations and cash on-hand.

Rogers continues to target growth opportunities in the EV/HEV, ADAS, portable electronics, renewable energy, aerospace and defense and other markets. The company's growth strategy is based on addressing trends in these markets and maintaining a strong customer-centric focus. Rogers expects to secure further commercial wins and improve sales as it executes on this strategy. The increase in revenues is largely expected to come from the organic business, with the potential to augment this growth through targeted acquisitions.

Rogers' operational excellence efforts are focused on driving ongoing cost improvements and efficiencies to further enhance profitability while enhancing the agility and customer focus of the organization. These efforts include focusing on improving yields, throughput, procurement capabilities, and manufacturing processes. The company has taken specific cost improvement actions in recent quarters, including optimizing the manufacturing footprint and reducing manufacturing and corporate employees. Rogers continues to review and re-align its manufacturing and engineering footprint in an effort to maintain a leading competitive position globally and to support customers' growth initiatives.

Rogers is in the midst of a multi-year design and implementation of a new ERP system, which will replace existing financial and operating systems. The implementation requires an investment of significant personnel and financial resources, including substantial expenditures for outside consultants, system hardware and software. The ERP system is expected to occur in phases over the next several years and will be depreciated through 2040 . As of December 31, 2025, capitalized software in-process related to the ERP system was $8.7 million and capitalized software in-service was $77.4 million with accumulated depreciation of $17.9 million .

Rogers expects capital spending in 2026 to be in the range of approximately $30.0 million to $40.0 million . As of December 31, 2025, $51.8 million remained available under the share repurchase program. The company has never declared or paid any cash dividends on its capital stock and may not pay any cash dividends in the foreseeable future. The Fifth Amended Credit Agreement generally permits the payment of cash dividends provided that no default has occurred and the total net leverage ratio does not exceed 2.75 to 1.00 . If the total net leverage ratio exceeds 2.75 to 1.00, the company may nonetheless make up to $20.0 million in restricted payments, including cash dividends, during the fiscal year.

Macroeconomic conditions such as high inflationary pressure, changes to monetary policy, high interest rates, volatile currency exchange rates, credit and sovereign debt concerns, decreasing consumer confidence and spending, and global or local recessions can adversely impact demand for Rogers' products. Recent macroeconomic conditions have been adversely impacted by geopolitical events, instability and military hostilities in multiple geographies, and monetary and financial uncertainties. Higher inflation in the U.S. and globally has led to an increase in costs and may cause changes in fiscal and monetary policy, including additional increases in interest rates. Other adverse impacts include supply chain constraints, logistics challenges, liquidity concerns in the broader financial services industry, and fluctuations in labor availability.

Beginning in February 2025, President Donald J. Trump signed multiple executive orders raising tariffs on U.S. imports. The situation remains fluid, and the duration and outcome of these tariff actions are uncertain. Rogers is unable to predict the ultimate result and duration of any tariff actions by the U.S. government, or countermeasures that may be taken by other nations. For the year ended December 31, 2025, approximately 72% of net sales resulted from sales in foreign markets, with approximately 41% and 29% of such net sales occurring in Asia and Europe, respectively. Sales to customers located in China and the Asia Pacific region accounted for approximately 41% of total sales as of December 31, 2025. Approximately 63% of employees were located outside the U.S. as of December 31, 2025.

Risk Factors

Rogers faces intense global competition from both high-end materials manufacturers and commodity suppliers, and if the company is unable to maintain its competitive advantage, demand for its products may be materially reduced. The company relies on sole or limited source suppliers for certain critical raw materials, and if it were unable to obtain adequate supplies in a timely manner or if costs increased significantly, operating results could be materially adversely affected. For the year ended December 31, 2025, approximately 72% of net sales resulted from sales in foreign markets, with approximately 41% occurring in Asia, exposing the company to risks including foreign currency fluctuations, trade conflicts, and geopolitical instability. The company recognized a non-cash impairment charge of $67.3 million to goodwill and $4.5 million to indefinite-lived intangible assets related to the curamik reporting unit in the second quarter of 2025 due to changing market competition and supply dynamics. As of December 31, 2025, the estimated asbestos-related liabilities were $57.4 million and estimated insurance recoveries were $52.8 million , and the full extent of financial exposure to asbestos-related litigation remains very difficult to estimate.

Management Priorities

Management's message emphasizes a growth and profitability strategy based upon four principles: market-driven organization, innovation leadership, operational excellence, and synergistic mergers and acquisitions. Priorities in executing this strategy are focused on driving near-term improvements to profitability and improving the growth outlook over the next several years by further strengthening the focus on commercial activities, optimizing global capacity to meet customer demand, and driving innovation. Management states that if the growth and operational improvement strategy is successfully executed, there is an opportunity over the next several years to increase revenues from current levels and further improve profitability. The increase in revenues is largely expected to come from the organic business, with the potential to augment this growth through targeted acquisitions. Management also notes that the company has taken specific cost improvement actions in recent quarters, including optimizing the manufacturing footprint and reducing manufacturing and corporate employees.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 8, Note 13 — Operating Segment and Geographic Information
  2. [2] Item 8, Note 13 — Operating Segment and Geographic Information
  3. [3] Item 7, MD&A — Operating Segment Net Sales and Gross Margin
  4. [4] Item 7, MD&A — Operating Segment Net Sales and Gross Margin
  5. [5] Item 8, Note 13 — Operating Segment and Geographic Information
  6. [6] Item 8, Note 13 — Operating Segment and Geographic Information
  7. [7] Item 7, MD&A — Operating Segment Net Sales and Gross Margin
  8. [8] Item 7, MD&A — Operating Segment Net Sales and Gross Margin
  9. [9] Item 7, MD&A — Restructuring and Impairment Charges
  10. [10] Item 8, Note 6 — Leases
  11. [11] Item 7, MD&A — Restructuring and Impairment Charges
  12. [12] Item 5, Issuer Purchases of Equity Securities
  13. [13] Item 5, Issuer Purchases of Equity Securities
  14. [14] Item 5, Issuer Purchases of Equity Securities
  15. [15] Item 5, Issuer Purchases of Equity Securities
  16. [16] Item 7, MD&A — Executive Summary
  17. [17] Item 8, Consolidated Statements of Operations
  18. [18] Item 8, Consolidated Statements of Operations
  19. [19] Item 7, MD&A — Executive Summary
  20. [20] Item 8, Consolidated Statements of Operations
  21. [21] Item 8, Consolidated Statements of Operations
  22. [22] Item 7, MD&A — Executive Summary
  23. [23] Item 8, Consolidated Statements of Operations
  24. [24] Item 8, Consolidated Statements of Operations
  25. [25] Item 8, Consolidated Statements of Operations
  26. [26] Item 8, Consolidated Statements of Operations
  27. [27] Item 8, Consolidated Statements of Operations
  28. [28] Item 8, Consolidated Statements of Operations
  29. [29] Item 7, MD&A — Liquidity, Capital Resources and Financial Position
  30. [30] Item 7, MD&A — Liquidity, Capital Resources and Financial Position
  31. [31] Item 8, Note 1 — Software Costs
  32. [32] Item 8, Note 1 — Software Costs
  33. [33] Item 8, Note 1 — Software Costs
  34. [34] Item 8, Note 1 — Software Costs
  35. [35] Item 7, MD&A — Liquidity, Capital Resources and Financial Position
  36. [36] Item 5, Issuer Purchases of Equity Securities
  37. [37] Item 8, Note 9 — Revolving Credit Facility
  38. [38] Item 8, Note 9 — Revolving Credit Facility
  39. [39] Item 1A, Risk Factors
  40. [40] Item 1A, Risk Factors
  41. [41] Item 1A, Risk Factors
  42. [42] Item 1A, Risk Factors
  43. [43] Item 1A, Risk Factors
  44. [44] Item 1A, Risk Factors
  45. [45] Item 1A, Risk Factors
  46. [46] Item 8, Note 7 — Goodwill and Intangible Assets
  47. [47] Item 8, Note 7 — Goodwill and Intangible Assets
  48. [48] Item 8, Note 10 — Commitments and Contingencies
  49. [49] Item 8, Note 10 — Commitments and Contingencies
  50. [50] Item 8, Consolidated Statements of Operations
  51. [51] Item 8, Consolidated Statements of Operations
  52. [52] Item 8, Consolidated Statements of Operations
  53. [53] Item 8, Consolidated Statements of Operations
  54. [54] Item 8, Consolidated Statements of Operations
  55. [55] Item 8, Consolidated Statements of Operations
  56. [56] Item 8, Consolidated Statements of Operations
  57. [57] Item 8, Consolidated Statements of Operations
  58. [58] Item 8, Consolidated Statements of Operations
  59. [59] Item 8, Consolidated Statements of Operations
  60. [60] Item 8, Consolidated Statements of Operations
  61. [61] Item 8, Consolidated Statements of Operations
  62. [62] Item 8, Consolidated Statements of Cash Flows
  63. [63] Item 8, Consolidated Statements of Cash Flows
  64. [64] Item 8, Consolidated Statements of Financial Position
  65. [65] Item 8, Consolidated Statements of Financial Position
  66. [66] Item 8, Note 9 — Revolving Credit Facility
  67. [67] Item 7, MD&A — Restructuring and Impairment Charges
  68. [68] Item 7, MD&A — Restructuring and Impairment Charges
  69. [69] Item 8, Note 13 — Operating Segment and Geographic Information
  70. [70] Item 8, Note 13 — Operating Segment and Geographic Information
  71. [71] Item 7, MD&A — Operating Segment Net Sales and Gross Margin
  72. [72] Item 8, Note 13 — Operating Segment and Geographic Information
  73. [73] Item 8, Note 13 — Operating Segment and Geographic Information
  74. [74] Item 7, MD&A — Operating Segment Net Sales and Gross Margin

Analysis on 6/19/2026